Game theory between two firms with two outcomes tends to emphasize:
A) noncooperative games.
B) cooperative games.
C) intra-firms decision-making.
D) purely competitive outcomes.

Question

Quizplus · Accepted Answer

Game theory tends to emphasize noncooperative games when there are only two outcomes because each firm is focused on maximizing its own payoff, which can lead to a more competitive outcome. Cooperative games may be more relevant in situations with more than two outcomes or when firms have shared interests. Intra-firm decision making and purely competitive outcomes are not necessarily emphasized in game theory between two firms with two outcomes.

Game Theory Between Two Firms with Two Outcomes Tends to Emphasize